Picower, Madoff Case Figure, Is
Dead at 67

Jeffry Picower, a longtime friend of Bernard Madoff and a figure who had been under scrutiny in the criminal investigation surrounding Mr. Madoff's fraud scheme, died on Sunday in Palm Beach, Fla., according to police.

The Palm Beach Police Department said they responded to a 9-1-1 call just after noon Sunday from a woman who said she had just found her husband at the bottom of their swimming pool. Mr. Picower, 67 years old, was brought to the hospital, where he was pronounced dead.

Accountant Jeffry Picower, shown in 2002, and a foundation run by his wife made $7.2 billion in profits from investing with Bernard Madoff since the 1970s, according to court documents. Mr. Picower denied that he knowingly profited from the Ponzi scheme.
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Marcia Horowitz, a spokeswoman for the Picower family, said Mr. Picower "had been in poor health." In addition to suffering from Parkinson's disease, he also had "a number of heart-related medical issues" for which he met regularly with cardiologists, she said. He is survived by his wife, Barbara, and his daughter, Gabrielle.

The police department said that it is conducting an investigation as "standard operating procedure in any drowning."

Mr. Picower, a billionaire, was one of several high-profile Madoff investors initially viewed as victims of Mr. Madoff's fraud who was later revealed to be among the biggest beneficiaries of it, having booked billions of dollars in profits. Federal prosecutors at the U.S. attorney's office in Manhattan are looking into whether Mr. Picower or several other longtime Madoff associates had knowledge of or complicity in the fraud, people familiar with the matter have said. Mr. Picower has not been charged with wrongdoing.

A court-appointed trustee recovering assets for Madoff victims alleged that Mr. Picower knew or should have known of the fraud because he requested -- and received -- outsized gains for his accounts.

The trustee has leveled similar charges against other longtime investors. For many victims of the fraud, the lawsuits represent the best chance they have to recoup some of their losses. Collectively, Madoff investors lost a total of $18 billion from the fraud, the trustee said recently.

The Picowers made $7.2 billion in profits from investing with Mr. Madoff since the 1970s, according to court documents filed by the trustee, Irving Picard.

In a lawsuit seeking the return of Mr. Picower's profits, the trustee said the Picowers had two dozen accounts with Mr. Madoff and received annual returns of more than 100% in 14 instances. He alleged that Mr. Picower or an employee would request that certain gains be "backdated."

A lawyer for Mr. Picower denied the allegations, saying Mr. Picower no knowledge of fraud until after Mr. Madoff was arrested last year. The Picowers "were not perpetuating Madoff's Ponzi scheme by withdrawing billions of dollars from their [Madoff] accounts," the lawyer wrote in a court filing that attempted to dismiss the trustee's lawsuit. "If anything, such large withdrawals would have placed an extraordinary strain on the scheme."

On Sunday, Ms. Horowitz, the family spokeswoman, said "progress was being made toward a settlement with the Madoff trustee." David Sheehan, a lawyer for the trustee, said there had been talks with Mr. Picower's lawyers but it was unclear whether a settlement would have been reached. "We will pursue the litigation with the same vigor irrespective of Mr. Picower's passing," Mr. Sheehan said.

A Bronx, N.Y., native, Mr. Picower earned a bachelor's degree from Pennsylvania State University, a master's in business from Columbia University and a law degree from Brooklyn Law School, according to public records and former colleagues. In addition to philanthropy and accounting work, Mr. Picower led buyouts of health-care and technology companies.

Mr. Madoff made regular visits to the Picower Foundation's office, and the Picowers would speak about traveling with the Madoffs to Florida for the weekend, Regina Mylan, who helped oversee the Picower Foundation's grants earlier this decade, said in an interview earlier this year.

"They identified with them," she said. "They both came from modest backgrounds." A lawyer for Mr. Madoff wasn't reached for comment.

With a recommendation from Mr. Madoff, more than 20 years ago the Picowers succeeded in buying a co-op apartment at an exclusive Manhattan apartment building on Park Avenue, a longtime building resident said.

Jeffry Picower purchased a Manhattan co-op apartment more than 20 years ago, Mr. Picower's lawyer said. An earlier version of this article incorrectly said he purchased the property about 10 years ago.

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